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Today's Prices (Fri pm)


CME LIVESTOCK:  Live Cattle: $199.475 (+1.20); Feeder Cattle: $269.40 (+1.10); Hogs: $88.675 (+1.325)


CME GRAINS:  Corn: $4.705 (+0.145); Wheat: $5.3075 (-0.0325); Soybeans: $10.2525 (+0.2625); Soybean Meal: $298.30 (-1.00)

STOCK UPDATE:   Dow 30: 41,936.54 (-698.66); Nasdaq: 19,180.66 (-298.22); S&P 500: 5,829.18 (-89.07) (Stocks Sharply Lower as a Strong US Jobs Report Signals Fed Pause)


ENERGY PRICES:  Crude Oil: $76.64 (+2.72); Ethanol: $1.685 (+0.06); Natural Gas: $3.984 (+0.281) (Crude Rallies as the US Expands Sanctions on Russian Oil)     


BOXED BEEF:  Choice: $332.84 (+2.06); Select: $314.14 (+5.79); Ch/Se Spread: 18.70; Total Loads: 128 compared to 116 on Thursday


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Highlights (Cattle Report Channel)

  1.  CME Live Cattle: $199.475 (+1.20); Feeder Cattle: $269.40 (+1.10);  Corn: $4.705 (+0.145) 
  2.  RTI (7-Day Feeder Cattle Index):  $276.71  (+2.15)
  3. AMARILLO: Partly sunny, then gradually becoming sunny, with a high near 35. Wind chill values between 8 and 18. North northwest wind 10 to 15 mph (FRI)
  4. Boxed beef up $2.06 on Fri to $332.84
  5. CATTLE TRADE: Cash trade in Texas at $200-1
  6. COT:  Funds increase net long position by 626 to 129.2K contracts 
  7. BEEF EXPORTS:   Beef sales terrible at 5.6K mt
  8. Weekly cattle slaughter at 589K hd
  9. Daily drop up 4 cents on Fri to $11.44
  10. DROUGHT MONITOR:  64.33% of Contiguous U.S. in drought compared to 66.65% last week and 53.50% last year
  11. Gas prices up 4 cents this week to $3.05, down $0.03 from last year
  12. Diesel prices up 6 cents this week to $3.56, down $0.27 from last year
  13. CATTLE ON FEED:  Inventory up slightly;  Placements up 5%
  14. Beef production up 16.6% from last week, cattle weights up 2 lbs from last week
  15. NATURAL GAS:   Henry Hub down 9 cents to $3.02

Critical Fire Weather Conditions Over Southern California; Southern Winter Storm  (FRI)

Critical fire-weather concerns will continue across the Los Angeles Basin and southern California through the morning. Santa Ana winds will begin to tapper off midday Friday and into Saturday. A significant winter storm will continue to bring heavy snow and disruptive ice across much of the South. A Pacific Storm will bring coastal rains and mountain snows to much of the Pacific Northwest. 


CATTLE TRADE:  Cash trade in Texas at $200-1

Thus far for Friday in the Southern Plains negotiated cash trading has been light with moderate demand. In the Texas Panhandle, a few live FOB purchases traded from 200.00-201.00. In Kansas, a few live FOB purchases traded at 201.00. However, not enough purchases in either region for a full market trend. Thursday was the last reported market in the Southern Plains with live FOB purchases at 200.00. In Nebraska negotiated cash trading has been light with moderate demand. When compared to the last market on Thursday, live FOB purchases traded steady at 203.00. The last reported dressed delivered market was on Thursday with purchases at 320.00. In the Western Cornbelt negotiated cash trading has been limited on light demand. The last reported market was on Thursday with live FOB purchases from 200.00-205.00 and dressed delivered purchases at 320.00.

U.S. EXPORT SALES:  Beef sales at 5.6K mt

Net sales 5,600 MT for 2025 marketing year, which began January 1, were primarily for Mexico (2,400 MT, including decreases of 2,800 MT), South Korea (1,300 MT, including decreases of 200 MT), Japan (900 MT, including decreases of 200 MT), China (500 MT, including decreases of 100 MT), and Canada (300 MT, including decreases of 100 MT), were offset by reductions for the Dominican Republic (200MT) and Indonesia (100 MT). Net sales reductions of 800 MT were carried over from the 2024 marketing year, which ended December 31. Exports for the period ending December 31 of 10,400 MT brought accumulated exports to 797,700 MT, down 2 percent from the prior year total of 810,200 MT. The primary destinations were to Japan (3,300 MT), South Korea (2,800 MT), China (1,600 MT), Mexico (800 MT), and Taiwan (500 MT). Exports for January 1 of 600 MT were primarily to South Korea (300 MT), Mexico (100 MT), and China (100 MT).

NATIONAL DROUGHT MONITOR

Based on 30 to 60-day SPI along with a lack of early season snowpack, a 1-category degradation was made to southwestern Colorado. Farther to the north across northwestern Colorado, improving snowpack resulted in a minor reduction in abnormal dryness (D0). Southwestern Nebraska has received little to no precipitation during the past 7 weeks, prompting an expansion of D0. In addition, above-normal temperatures during the late fall and into the early winter exacerbated increasing short-term dryness. Heavy precipitation (more than 1 inch, liquid equivalent) for this time of year resulted in a 1-category improvement to northeastern Kansas. No changes were made to the Dakotas and early January is one of the driest times of the year.

United States Cattle on Feed Down Slightly

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 12.0 million head on December 1, 2024. The inventory was slightly below December 1, 2023.   Placements in feedlots during November totaled 1.80 million head, 4 percent below 2023. Net placements were 1.74 million head. During November, placements of cattle and calves weighing less than 600 pounds were 495,000 head, 600-699 pounds were 420,000 head, 700-799 pounds were 375,000 head, 800-899 pounds were 276,000 head, 900-999 pounds were 145,000 head, and 1,000 pounds and greater were 85,000 head.   Marketings of fed cattle during November totaled 1.73 million head, 1 percent below 2023.   Other disappearance totaled 55,000 head during November, 2 percent above 2023.

Weekly beef production up 16.6%, Cattle weights up 2 lbs from last week

Weekly beef production for the week ending January 11, 2025, was estimated at 512.1 million pounds, up 16.6% from 439.1 million pounds the previous week and up 12.5% from 455.4 million pounds during the same week last year. Despite this weekly increase, year-to-date beef production stands at 756.0 million pounds, reflecting a significant 17.6% decrease compared to 917.7 million pounds produced by this time last year. This decline suggests ongoing supply constraints in the beef market despite stronger weekly output.

Cattle slaughter for the week was estimated at 589,000 head, a 16.4% increase from the prior week's 506,000 head and up 8.1% from 545,000 head during the same week last year. However, year-to-date cattle slaughter totals 870,000 head, marking a sharp 20.0% drop compared to 1,087,000 head processed during the same period last year. This decrease in slaughter volumes reflects tighter cattle supplies, which continue to support higher beef prices in the market.

Live cattle weights averaged 1,435 pounds, up slightly from 1,433 pounds last week and notably higher than 1,396 pounds during the same week in 2024. Dressed cattle weights also increased to 872 pounds, compared to 870 pounds last week and 838 pounds last year. These higher weights are partially offsetting lower slaughter numbers, helping to sustain beef production levels. However, the combination of reduced slaughter and tighter supplies signals continued strength in cattle prices moving forward.

Livestock Comments:  Dr. Andrew Griffith

As market participants look forward to next week, one would expect cattle prices to continue demonstrating their strength. However, the winter precipitation expected across Tennessee and a large swath of the South may grind cattle movement to a halt for sales early in the week. The only auctions that may be able to do business are those who hold sales in the second half of the week. Regardless, when cattle are able to be traded, the expectation is for continued strength in the market. As one ponders how high prices can go, the next question is how high heifer and breeding female prices will go. The replacement female market has already demonstrated strength for bred females, pairs, and three in one offerings. The next place to look for strength is in the heifer calf market. Will heifer calves close some of the discount gap compared to steer mates as cattlemen look to develop and breed females? One would think somebody has to have interest in these females as they s ould have a strong value as bred females.

CATTLE SLAUGHTHER:    Cattle slaughter for the week was estimated at 589,000 head, a 16.4% increase from the prior week's 506,000 head and up 8.1% from 545,000 head during the same week last year

THE BEEF READ:   Unstoppable Cattle Market Rally Resumes... CME cattle futures have resumed their uptrend with a vengeance today with lead options February LC and January FC leading the charge. February made a new high for the move in a big way and is closing in on its contract high of $199.55. Yesterday’s break is a distant memory (THE BEEF)

DAILY DROP:   The hide and offal value was estimated at $11.44, up 4 cents from Wednesday (Thursday holiday)

Rob Cook, RobCookKC@gmail.com